SEBI Regulations 2025: Key Amendments and Functions Explained

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• Updated on 26 Sep, 2025, by Kollegeapply

The Securities and Exchange Board of India (SEBI) regulates the Indian securities market to ensure fairness, transparency, and investor protection. In 2025, SEBI introduced key amendments to strengthen its regulatory framework and support market growth. SEBI Regulations apply to companies, investors, stock exchanges, and intermediaries, ensuring smooth and ethical functioning of the market.

Key Functions of SEBI

SEBI performs multiple functions to maintain an honest and transparent securities market. The main functions include:

Regulating Market Intermediaries: SEBI registers and supervises intermediaries such as stockbrokers, merchant bankers, and investment advisers to ensure fair practices.
Banning Unfair Trade Practices: Insider trading and market manipulation are strictly prohibited to protect investors.
Promoting Investor Education: SEBI conducts awareness campaigns and investor education programs to reduce risks of fraud.
Regulating Takeovers and Acquisitions: Mergers, acquisitions, and large share purchases are monitored for fair treatment of shareholders.
Ensuring Transparency: Companies are required to disclose essential information in a timely manner to enable informed investment decisions.

Major SEBI Regulations 2025

SEBI regulates various aspects of the securities market, and recent updates in 2025 focus on investor protection, corporate governance, and market efficiency. Key regulations are:

SEBI Regulation	Purpose	2025 Update
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR)	Corporate governance and transparency in listed companies	Tightened related party disclosures
SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR)	Regulates IPOs and rights issues	Simplified rights issue process
SEBI (Prohibition of Insider Trading) Regulations, 2015	Prevents misuse of price-sensitive information	Expanded definition of UPSI to include business orders/contracts
SEBI (Mutual Funds) Regulations, 1996	Governs mutual funds	Improved transparency and investor protection
SEBI (Alternative Investment Funds) Regulations, 2012	Private equity, venture capital, hedge funds	Simplified framework to encourage growth
SEBI (Research Analysts) Regulations, 2014	Ensures independent research	Strengthened compliance requirements
SEBI (Investment Advisers) Regulations, 2013	Regulates investment advisory services	Enhanced investor protection measures

Key Amendments of SEBI Regulations 2025

In 2025, SEBI introduced amendments to meet market demands and protect investors. These include:

Expansion of Same-Day Settlement (T+0): Optional same-day settlement introduced for top five hundred stocks from January 31, 2025, to improve liquidity.
Strengthening Insider Trading Regulations: The definition of unpublished price-sensitive information (UPSI) now covers business contracts and orders.
Easing Rights Issue Process: Simplified procedure by reducing paperwork and removing the need for lead managers in some cases.
Review of ESG Disclosures: SEBI initiated reviews to ensure accurate and useful environmental, social, and governance reporting.